1307 [Dow Jones] STOCK CALL: Credit Suisse initiates coverage of...

1307 [Dow Jones] STOCK CALL: Credit Suisse initiates coverage of Australian coal stocks, says the sector is now cheap. Says coking coal prices are set to fall with production cutbacks inevitable and thermal coal is not immune, but long-term fundamentals are intact. "In the longer term, both coking and thermal coal prices are well underpinned by strong underlying demand and infrastructure requirements and we assume long run coking and thermal coal prices at US$140 (per metric ton) and US$80 (per ton)respectively," CS says. Starts Felix (FLX.AU) at outperform with A$20 target price, Centennial (CEY.AU) at outperform with A$4 target and Macarthur (MCC.AU) at outperform with A$8.70 target. Starts Aquila (AQA.AU) at neutral with A$3.50 target and Riversdale (RIV.AU) at neutral with A$2.80 target. FLX trading up 2.8% at A$7.86, CEY up 2% at A$2.50, MCC down 5.6% at A$2.55, RIV up 4.3% at A$2.43 and AQA up 3.6% to A$3.15. (APW)